Market Research

Market research is one of the most effective management tools with a wide significance in the present scenario. The need for research has grown tremendously in the past several years as it contributes to a better growth in the business.

Market research serves to be an effective tool that analyses the existing marketing conditions of products and services. Every business venture requires effective researches to evaluate the business of products and services which helps in boosting the overall sales of a company.

Why Market Research Is Considered Vital?

The procedure of collecting and analysing data through various sources is clearly defined as market research. The fundamental principle behind such research involves the need to understand the requirements of the consumers so as to achieve business goals. Important marketing decisions can be made only through the analysis of data collected.

There are many benefits of conducting researches before the launch or a new product or to analyse the marketing conditions of the existing products. Let us discuss the main benefits of conducting these researches.

Better understanding of consumer behaviour: An effective market research helps to analyse the behavioural patterns of the consumers. This business strategy helps to evaluate the behaviour of potential consumers.

Competitors: Through such researches, it is easy to understand the strategies adopted by the competitors in the existing markets. It also helps to further analyse the effect of certain products on the consumers giving a precise picture of the market conditions.

Reduce potential risk: Effective researches also reduce the risk involved in launching new products. Products can be launched after conducting thorough research in the markets.

Advanced communication: Research leads to better and increased communication between manufacturers and consumers. Effective communication through data collection, surveys and other methods, it is possible to understand the requirements of the consumers and launch products that meet the needs of the target audience. This further helps to accelerate the growth of business.

Maximise profits: Apart from market research, it is possible to maximise profits through various methods such as price elasticity, item optimisation and profitability analysis.

Two Different Types of Market Research

Research is necessary to tap the opportunities in the existing markets and to maximise profits. The two main types of research involve the primary and the secondary research. The primary research is one of the most expensive methods of conducting researches. The quantitative and qualitative researches are the two types of primary researches.

The different methods of primary research involve direct interviews, phone interviews and direct mails. Though primary research involves both time and money, it is one of the most effective methods of conducting research. Surveys are conducted through interviews which give a comprehensive view of the consumer behavioural patterns and requirements. Interviews are conducted on telephones which prove to be a better option as it helps to include a huge geographical area.

The secondary market research is another method of conducting researches. Though it is not as effective as the primary method, it is less expensive. Nevertheless, businesses can conduct both the primary and the secondary research methods to obtain desired results.

Global marketing has become a fact of life. Local companies are affected by global ones, understanding the global market is a must. Firms are going beyond geographical boundaries to take advantage of resources they don’t have in their countries. Understanding these diverse markets is a must and it is done through global market analysis. Conducting research in these countries is hard, so it is better to get research done by a local firm. Marketing and research go hand in hand now, previously the market analysis department did not have a say in decision making but now, and they play a major role. They help in predicting trends in the market.

Importance of Market Research

Market research is very important; it helps companies to tailor their messages to their targeted audience and helps the organisation to perform better. Research can measure the reputation of a company among consumers, governmental officials and the academic community. Mathematical models are used to estimate the failure or success of a product. Research helps in getting consumer reaction to products that are already being sold by the company or even a product that is at a conceptual stage. Research can tell a marketing company what flavour or colour the appeals most to the consumer. Target audiences can be set accurately and positioned in the right market. Research can prove whether your advertisement communicates what it was intended to be.

The major steps involved in market research are:

• Defining the market research problem
• Formulation of Research design
• Analysis of secondary data
• Development of a questionnaire
• Collection of primary data
• Data Analysis
• Preparation and Presentation of report

Phases of Global Market Research

These is in general for global market analysis with more steps. International Marketing Research design has 5 major phases

• Phase 1: Deciding whether to internationalise- Assessing the demand for the company’s products or services
• Phase 2: Deciding on markets to enter- Understanding their local competition and the potential of the product
• Phase 3: Market entry strategies- Understanding the competitors strategy
• Phase 4: Designing the international marketing mix, the 7 Ps- Understanding the behaviour of the consumer, SWOT analysis, and deciding on the media mix
• Phase 5: Implementation of plan in international market- Final implementation and analysis of performance.

Acquiring secondary data is a must; this gives a clear background as to how the process of research takes place. Other companies would have also done market research in these global markets. By reading these works of market researchers can design their analysis work. At the end of the research work, companies usually list out the drawbacks of the research or the challenges they faced during the implementation phase.

Primary research must be done when the agency is not able to acquire enough or reliable information. Collecting primary data takes more time and money consuming. Designing a primary data collection is a must and the right collection technique to collect data. Some of the popular methods of data collection for global market analysis include:

• Observational and Tracking Methods
• Focus Group Interviews
• In-depth Interviews
• Action Research
• Survey and Questionnaires
• Experiment
• Psychological or Psychographic approach2

Global market analysis is very important and companies which have knowledge about global markets must be selected, so that data obtained is accurate. Market research allows marketing agencies to tailor their message or product accurately in the right country at the right time. Geographical boundaries have more differences, in terms of weather, culture, religion and language. The product or service should be positioned in a market where it is profitable.